• Six individuals, including a USDA employee, were indicted in a $66 million food stamp fraud and bribery scheme involving unauthorized EBT cards and falsified SNAP retailer registrations.
• USDA employee Arlasa Davis allegedly sold confidential information, enabling illegal transactions exceeding $30 million, described as a betrayal of public trust.
• The case highlights the need for stronger safeguards in food assistance programs, with potential for stricter oversight and SNAP retailer screening.

A major food stamp fraud and bribery scheme involving the U.S. Department of Agriculture (USDA) has unraveled, leading to the indictment of six individuals, including a USDA employee. The scheme, which misappropriated over $66 million in taxpayer funds, was announced Friday by the USDA, FBI, and the U.S. Attorney's Office.

Key Allegations in the Case

The defendants—Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Arlasa Davis—are accused of conspiring to steal government funds and misuse USDA benefits. Federal prosecutors allege that the scheme, initiated in 2019, distributed 160 unauthorized electronic benefit transfer (EBT) cards to stores across New York, resulting in illegal transactions exceeding $30 million.

USDA employee Arlasa Davis allegedly facilitated the fraud by selling confidential government information, according to U.S. Attorney Perry Carbone, who described the act as a severe betrayal of public trust.

The indictment also accuses the group of submitting fraudulent USDA applications, falsifying documents, and misusing license numbers to register unauthorized stores as participants in the Supplemental Nutrition Assistance Program (SNAP).

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Broader Context: USDA Policies Under Scrutiny

This case comes as federal agencies face increasing pressure to address fraud in food assistance programs. The Trump administration had emphasized overhauling food assistance policies, criticizing previous administrations for financial mismanagement. In 2026, the USDA proposed replacing the $425 million Commodity Supplemental Food Program with direct supplies from U.S. farmers under the Make America Healthy Again (MAHA) initiative, though the program faced mixed reception.

Implications and Next Steps

The arrests and indictments underscore the need for stronger safeguards within government programs. Experts believe this case could lead to enhanced regulatory oversight and stricter screening of SNAP retailers. Meanwhile, advocacy groups caution that such fraud scandals should not overshadow the critical role of food assistance programs in combating hunger globally.

The USDA has yet to comment on whether additional arrests or policy changes are forthcoming. This case highlights the ongoing challenge of balancing accessibility in public welfare programs with the prevention of fraud and abuse.

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